Since the birth of bitcoin, it has caused great concerns, then how does it affect the real economy?
1. Create new markets and profit models.
Bitcoin gave birth to the corresponding electronic products. There are three key markets for bitcoin, virtual wallet, exchange and payment.
Virtual wallet: The virtual wallet service helps users hold bitcoins and provides some functions of the bank’s current deposit account.
Exchange: exchange the cryptocurrency into real currencies like USD, or real currency into bitcoins.
Payment: The payment service helps the merchant to accept bitcoin in the transaction.
2. Impact the financial market.
As a virtual currency, bitcoin is different from physical currencies that has difference, its exchange process will not produce any fees. Physical currency is fixed as a general equivalent of goods, with the functions of value, circulation, payment and so on. Bitcoin is a global currency that operates entirely on the Internet and is not interfered with by governments, which brings great convenience to all kinds of international trade. Since Bitcoin does not need any material to coin, it is particularly environmentally friendly and saves a lot of resources. As bitcoin is restricted by the algorithm, it will tend to a certain value. All of the above advantages are unmatched by real money. Therefore, the circulation of Bitcoin is bound to have a certain impact on the financial market and the real economy.
3. Illegal transactions.
Bitcoin will not be frozen, can’t be tracked, don’t need to pay taxes, and has low transaction fees. Therefore some criminals use it for money laundering. Because the point-to-point transaction will not be regulated, bitcoin brings convenience for illegal transactions.
Good or bad, bitcoin is here.